Arkansas and Mississippi have become the latest states to eliminate sales tax on gold and silver purchases within the respective states. The measures in each state, backed by the Sound Money Defense League, passed in overwhelming manners and have been signed into law in both states. The legislation in both states means that only seven states in the United States now charge sales tax on purchasing gold and silver.
The Arkansas Legal Tender Act, introduced by Rep. Robin Lundstrum (R – 18) and Sen. Jonathan Dismang (R – 18), passed overwhelmingly out of the House by a vote of 82-8, passed unanimously out of the Senate with a 32-0 vote, and ultimately received Governor Sarah Huckabee Sanders’ signature on April 11.
Specie is defined as “Coin having gold or silver content; or refined gold or silver bullion that is coined, stamped, or imprinted with its weight and purity; and valued primarily based on its metal content not its form.”
The measure continues, “Specie or legal tender shall not be characterized as personal property for taxation or regulatory purposes.”
To remove any doubt of the legislature’s intent, HB 1718 explicitly states, “the exchange of one type or form of legal tender for another type or form of legal tender shall not give rise to any tax liability,” and “the purchase, sale, or exchange of any type or form of specie shall not give rise to any tax liability.”
Meanwhile in Mississippi:
Senate Bill 2862, sponsored by Sen. Juan Barnett (D-34), had passed out of the full senate by a vote of 52-0 and sailed through the House of Representatives by a vote of 115-0. The effective date is July 1, 2023.
Backed by the Sound Money Defense League, Money Metals Exchange, and in-state Mississippi dealers and investors, this year’s legislative effort built upon a multi-year grassroots campaign waged by sound money activists. Other key supporters in the Mississippi legislature included Rep. Jody Steverson (R-4), Rep. Jill Ford (R-73), and Sen. Chad McMahan (R-6).
Taxing all precious metals purchases has become an outmoded and even controversial practice in the United States. Only seven states still engage in it.